Costco’s New Bakery Bread Has A Little Kick—And It’s All I Want For Sandwiches Now

For those with a penchant for delightful desserts, Costco has been stirring the pot with some exciting updates. They’ve recently reintroduced their pumpkin cheesecake, and to boot, they’ve added a tantalizing new brownie sundae to the Food Court lineup. While savory treats aren’t overhauled as often, fear not for those who favor the savory over the sweet. Their latest loaf is more than making up for any missed treats.

According to reports from social media, the warehouse giant is spreading the buzz about their new Jalapeño Cheddar Loaves with Roasted Pepper across the nation. We were lucky enough to snag one from our Birmingham, Alabama-based store, and we’re thrilled to say it’s now my go-to sandwich bread.

The front entrance of a Costco Wholesale store showing entry and exit doors as well as a person walking along the sidewalk outside
The front entrance of a Costco Wholesale store showing entry and exit doors as well as a person walking along the sidewalk outside

The loaf’s signage boasts a blend of sharp Cheddar cheese, roasted jalapeños, roasted corn and peppers, caramelized wheat, and a natural starter, all baked to perfection in a hearth oven for that charming, crispy texture.

Kimberly Holland / Southern Living

When you slice into this loaf, each piece is adorned with morsels of green and red peppers, complemented by toasty bits of corn. Although not a true sourdough (Costco doesn’t label it as such), it does possess a distinctive tang, which I attribute to the starter. This sourdough-like zing enhances the peppery kick of the vegetables in every bite.

On the weekend, I crafted a sandwich using this loaf—chipotle turkey, Country Dijon mustard, and a mix of veggies—and it’s now my top choice for lunch. I suggest giving the bread a gentle toast to elevate its flavor to that of a freshly baked loaf. (Freshly cut from the loaf, the slices can be a bit rigid and cool.)

I also enjoyed it in a traditional cheese toast—because who doesn’t love more cheese? I scattered some shredded Tillamook Cheddar over it, toasted it in the oven, and indulged in a delightful afternoon treat.

The peppers’ warmth is quite evident; it’s not trying to mask itself. However, it doesn’t overpower the other ingredients. It’s a warm, vibrant flavor that pairs beautifully with sandwich fillings, toast toppings, or even just a pat of butter.

Each loaf is priced at $9.99, with variations depending on location. Like many of Costco’s bakery items, there’s no set timeline for how long this bread will remain on shelves, or if it will become a staple. So, if you’re intrigued, head to your nearest store to give it a try.

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